Orkla's operating revenues increased by 14% in the third quarter to NOK 16.8
billion. The improvement is primarily due to price increases and positive
currency translation effects. Eight out of 12 portfolio companies had underlying
profit growth.
Orkla's consolidated portfolio companies increased operating profit EBIT (adj.)
by 16% to NOK 1.8 billion in the third quarter.
The profit contribution from associates amounted to NOK 509 million, an
improvement of 114%. Jotun (42.7% interest) was the main contributor to this
improvement. Jotun's profit was driven by volume growth, higher gross margin and
good cost control.
Orkla's profit before tax amounted to NOK 2.0 billion, down 9% from the third
quarter of 2022. The main reason for the decline is significantly lower power
prices. Hydro Power's operating profit EBIT (adj.) was reduced from NOK 773
million to NOK 153 million.
Adjusted earnings per share rose by 2% to NOK 1.61 in the third quarter.
"I am pleased to report profit growth for most of the portfolio companies. It is
gratifying to see Jotun's continued strong growth and that Orkla India is
delivering solid growth on top of last year's good profit. The start-up of a new
biscuit factory in Latvia has been more difficult and complex than anticipated
and has impacted negatively on our profit.
Continued high inflation, lower buying power and reduced demand have had a
negative effect on sales volumes in several portfolio companies. Major cost
improvement measures are proceeding as planned and contributing to reduce cost
growth," says Orkla President and CEO Nils K. Selte.
Orkla is a leading industrial investment company with a brands and consumer
-oriented scope. A new business model comprising 12 autonomous portfolio
companies was implemented as of 1 March 2023.
"The portfolio companies have recently finalised their strategic plans for the
coming years. It will be some time before we see the results of the good work
that has been done. Orkla's new business model better facilitates structural
measures, but in the short and medium term the most value-creating activities
will be to improve the performance of our portfolio companies. We will come back
to this topic at our upcoming Capital Markets Day at the end of November," says
Nils K. Selte.
Orkla Foods Europe, which is Orkla's largest consolidated portfolio company, has
today announced a change of CEO, as Paul Jordahl wishes to step down. Atle Vidar
Nagel Johansen, who is currently EVP & Investment Executive at Orkla, will serve
in the role temporarily as from 1 November 2023.
Orkla ASA
Oslo, 26 October 2023
Ref.:
EVP Communication and Corporate Affairs
Håkon Mageli, mob.: +47 928 45 828
SVP Investor Relations
Kari Lindtvedt, mob.: +47 950 75 114
An Excel spreadsheet with key figures may be found at
https://investors.orkla.com/
This information is considered to be inside information pursuant to the EU
Market Abuse Regulation and is subject to the disclosure requirements pursuant
to Section 5-12 the Norwegian Securities Trading Act.
This stock exchange announcement was published by Kjetil Sørum, VP Investor
Relations at Orkla ASA, on 26 October 2023 at 07:00 CEST.